Updated Oct 18, 2026
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U.S. services sector expanded in June with ISM Services PMI at 54%

TEMPE, Ariz., July 6. The U.S. services sector expanded in June, with the Institute for Supply Management's Services PMI at 54.0%, the organization's monthly report shows. The Business Activity Index led at 55.4%, the New Orders Index printed 55.1%, the Supplier Deliveries Index came in at 54.4%, and the Employment Index registered 51.2%.

By Hannah Voss2 min read
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Key takeaways

  • The U.S. services sector expanded in June 2025, with the ISM Services PMI registering 54.0%, four points above the 50.0% expansion-contraction threshold.
  • All four reported sub-indexes finished above 50.0%: Business Activity at 55.4%, New Orders at 55.1%, Supplier Deliveries at 54.4%, and Employment at 51.2%.
  • The Business Activity Index led the release at 55.4%, while the Employment Index was the lowest of the four gauges at 51.2%.
  • The 4.2-point gap between business activity and employment indicates the sector expanded output faster than it added workers in June.
  • The data reflect responses from the nation's purchasing and supply executives, as reported by the Institute for Supply Management.

TEMPE, Ariz., July 6. The U.S. services sector expanded in June, with the Institute for Supply Management's Services PMI at 54.0%, the organization's monthly report shows. The Business Activity Index led at 55.4%, the New Orders Index printed 55.1%, the Supplier Deliveries Index came in at 54.4%, and the Employment Index registered 51.2%.

Readings across the four reported indexes

All four sub-indexes finished above 50.0%. Business activity at 55.4% was the highest reading in the release, with new orders at 55.1% a close second. Supplier deliveries came in at 54.4%.

Employment at 51.2% was the lowest of the four gauges. The 4.2-point gap between business activity and employment indicates the sector expanded output faster than it added workers in June.

Survey base

The data reflect responses from the nation's purchasing and supply executives, according to the Institute for Supply Management. Economic activity in the services sector continued to expand in June, the organization said.

The headline PMI at 54.0% sits four points above the 50.0% level that separates expansion from contraction. New orders at 55.1% was the second-highest reading among the four reported sub-indexes.

Frequently asked

What was the ISM Services PMI reading for June?

The ISM Services PMI was 54.0% in June, indicating the U.S. services sector expanded.

What does a PMI of 54.0% mean?

A PMI of 54.0% sits four points above the 50.0% level that separates expansion from contraction, signaling the services sector expanded in June.

Which sub-index was the strongest and which was the weakest?

The Business Activity Index was the strongest at 55.4%, while the Employment Index was the weakest at 51.2%.

Who provides the data behind the ISM Services PMI?

The data reflect responses from the nation's purchasing and supply executives, according to the Institute for Supply Management.

What does the gap between business activity and employment indicate?

The 4.2-point gap between business activity (55.4%) and employment (51.2%) indicates the sector expanded output faster than it added workers in June.